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CIRCULAR No

CIRCULAR No. 01/1999/TT-BTM OF JANUARY 5, 1999 PROVIDING GUIDANCE ON THE CERTIFICATES OF ORIGIN FOR THE PREFERENTIAL IMPORT TAX ENJOYMENT

In furtherance of the Government�s Decree No. 94/1998/ND-CP of November 17, 1998 detailing the implementation of Law No.04/1998/QH of May 20, 1998 amending and supplementing a number of Articles of the Law on Export Tax and Import Tax;

Pending the readjustment of Joint Circular No.280/TCHQ-GSQL of November 29, 1995 stipulating the certificates of export and import goods, origins by the Ministry of Trade and the General Department of Customs;

After consulting the General Department of Customs;

The Ministry of Trade provides the following guidance on the certificates of origin for preferential import tax enjoyment:

I. GENERAL PROVISIONS:

1. As from January 1st, 1999, organizations or individuals that import goods (hereafter referred to as importers) and wish to enjoy preferential import tax, shall have to obtain certificates of origin issued by the competent organizations certifying that the import goods originate from the countries that have reached agreement on the most favored nation treatment in the trade relations with Vietnam.

2. Countries having reached agreement on the most favored nation treatment in their trade relations with Vietnam are those defined in the Appendix issued together with Official Dispatch No.7280/1998/TM-PC of December 31, 1998 of the Ministry of Trade and those added later (if any) by the Minister of Trade�s decisions.

3. The certificates of origin certifying that the goods originate from the countries having reached agreement on the most favored nation treatment in their trade relations with Vietnam shall be accepted in cases defined in Joint Circular No.280/TCHQ-GSQL of November 29, 1995 of the Ministry of Trade and the General Department of Customs stipulating the certificates of origin of export and import goods.

II. THE SHOWING OF CERTIFICATES OF ORIGIN:

The certificates of origin shall be produced to the customs authorities as prescribed in Joint Circular No.280/TCHQ-GSQL of November 29, 1995 of the Ministry of Trade and the General Department of Customs stipulating the certificates of origin of export and import goods.

Particularly for lots of goods which arrive at Vietnam�s border-gates before March 1st, 1999, if the importers of such goods wish to pay import tax at the preferential rates but have not yet obtained certificates of origin, they shall be entitled to delay producing such certificates of origin for a time limit of 60 days after the customs procedures are completed. The customs authorities shall temporarily calculate import tax at the ordinary rates for the importers to fulfill their tax obligations. Within such time limit of 60 days, if the importers can produce the valid certificates of origin, the customs authorities shall re-calculate import tax at the preferential tax rates and reimburse the tax difference to the importers. Other taxes and fees, if being collected on the basis of import tax (such as value-added tax, special consumption tax,...), shall also be calculated by the customs authorities at the preferential import tax rates and the difference shall also be refunded to the importers.

As from March 1st, 1999, the showing of certificates of origin and the cases entitled to delay the showing of certificates of origin shall comply with the provisions of Joint Circular No.280/TCHQ-GSQL of November 29, 1995 of the Ministry of Trade and the General Department of Customs.

III. IMPLEMENTATION PROVISIONS:

1. In the course of implementation, if they encounter problems regarding the certificates of origin, the importers may contact the Departments for Overseas Market Policies of the Ministry of Trade to get further guidance. More concretely:

- If the import goods originate from the East Asian, Southeast Asian and Oceanic markets, the importers may contact the Department for Asia-Pacific at telephone numbers: (04) 824.68.05 and (04) 825.49.15;

- If the import goods originate from the West Asian, South Asian and African markets, the importers may contact the Department for Africa and Southwest Asia at telephone numbers: (04) 826.25.20 and (04) 824.68.04;

- If the import goods originate from the European and American markets, the importers may contact the Department for Europe and America at telephone numbers: (04) 826.25.22 and (04) 826.25.27.

2. The Ministry of Trade requests the ministries, the ministerial-level agencies, the agencies attached to the Government, the People�s Committees of the provinces and centrally-run cities and the central bodies of the mass organizations to disseminate the content of this Circular among enterprises under their respective management for implementation, and at the same time report problems arising in the course of implementation of this Circular to the Ministry of Trade and the General Department of Customs for timely and appropriate readjustment.

This Circular takes effect after its signing.

For the Minister of Trade

Vice Minister

MAI VAN DAU